Nobody can tell from the pictures.........make a low wall with studs and drywall, cap it.. ..lose the transom.

Or, add a railing instead of a low wall. I hope sunken rooms never come back.

agree- terrible

no steps if you have another entry option.

someone said close off the transon, but I would leave it open, more light.

Put in interior windows to open up the space. Two of these picture show with doors but you could do the same look but without the doors.